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e-CRM and Collaboration: Getting ROI from the Internet

National Mortgage Professional
Oct 20, 2001

National Delinquency Survey, NDS, Mortgage Bankers Association of America, MBA, economyMortgagePress.comMortgage Delinquencies, Foreclosures, Mortgage Bankers Assocaition of Amerca, MBAA The number of homeowners late in paying their mortgages and the number of foreclosed homes increased in the third quarter of 2000, according to a quarterly survey conducted by the Mortgage Bankers Association of America (MBA). In MBA's latest National Delinquency Survey (NDS), the delinquency rate for loans on one- to four-unit residential properties increased 22 basis points to 4.04 percent during the third quarter. The percentage of loans on which foreclosure was started during the quarter increased by five basis points to 0.31 percent, and the percentage of loans in the foreclosure process at the end of the quarter dropped one basis point to 0.84 percent. The third-quarter gross domestic product was weaker than expected at 2.2 percent, and employment numbers became weaker during the quarter as well. Douglas G. Duncan, MBA's chief economist, said that slowing income growth and increasing unemployment will combine with the aging loan portfolio to increase delinquency rates. However, the rise may be tempered if the Federal Reserve begins easing interest rates. The third-quarter increase in delinquencies was the second consecutive quarterly rise. After falling 71 basis points from the first quarter of 1998 through the first quarter of 2000, the delinquency rate in the past two quarters has increased by 32 basis points. Delinquencies increased in each of three loan categories. The percentage of loans 30 days past due increased 16 basis points to 2.84 percent, loans 60 days past due increased four basis points to 0.64 percent, and the percentage of loans 90 days or more past due increased two basis points to 0.56 percent. The delinquency rate also increased for each of the three loan types during the quarter. The rate for conventional loans was 2.55 percent, up 13 basis points from the previous quarter, and the rates for FHA and VA loans were 9.04 percent, up 31 basis points, and 6.80 percent, up 13 basis points, respectively. On a smaller sample of loans, the NDS found that the delinquency rate for both fixed- and adjustable-rate mortgages (ARMs) increased in the third quarter. The rate increased 21 basis points to 3.16 percent for fixed-rate mortgages and jumped 20 basis points to 5.30 percent for ARMs. The increase in foreclosures that began during the third quarter pushed that rate up to its highest level since the first quarter of 1999 when it was 0.32 percent, while the percentage of loans in the foreclosure process at the end of the quarter was at the lowest level since the fourth quarter of 1985 when it was 0.81 percent. The inventory of loans in foreclosure at the end of the quarter varied by loan type. The percentage of conventional loans in foreclosure increased 2 basis points to 0.59 percent. The percentage of FHA loans in foreclosure decreased 11 basis points to 1.69 percent, and the percentage of VA loans in foreclosure decreased 12 basis points to 1.32 percent.
Published
Oct 20, 2001
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